Skip to main content

tv   Markets Now  FOX Business  October 3, 2013 11:00am-1:01pm EDT

11:00 am
dagen: nothing is worse than that dmv. [laughter] dagen: note jobs report out on friday. is it really raising fears among investors? more on the tesla car fiie. facebook building its own town near its company headquarters. raising hell over what you wear to work. uptight employees are all fired up over casual fridays. connell mcshane is here with me this hour of "market now." ♪ connell: why have you started to add these awkward comments? i do look pretty good today.
11:01 am
dagen: even when you are casual, you kind of throw people off because you look even better. connell: still not buying her lunch. let's go to nicole petallides. nicole: good morning. we are looking at the markets right now. we have seen some accelerated selling over the last hour or so. it shows you that there are still some tutors here. traders on wall street shrugging off his comments. we are watching just about every sector here. the one green arrow on the big
11:02 am
board is though that is, the fear index. there is nervousness here on wall street. dagen: the strange worry about that default. the employment report for september will not be released tomorrow as the government shut down enters day three. connell: race at covering it all. rich: congress is here, but they will not pass anything. the house will try and the senate will reject and we will continue going on here. the white house meeting was essentially a negotiation about not negotiating.
11:03 am
>> the president's refusal to work in a bipartisan way has led us to this shut down. we must fix and restore the american people's faith and our economy and our government. especially before we reach our debt limit deadline. rich: democrats are saying if they would drop the obamacare demands, they will be willing to negotiate budget ceiling issues. as we get closer to merging these two issues, it would lead to a large and adverse financial shock.
11:04 am
dagen: thank you, rich. rich ads in down in washington. connell: what data should investors be using to gauge the health of the economy right now? dagen: bill, to you first. what do you hang your hat on in terms of economic numbers? >> even if the government shut down, i think it looks make sense to look at a mosaic. you have an initial jobless claims today. that is a good report. it came in better than expected. we just got another version of
11:05 am
this this morning. they come out from surveys. that government data. that i like, as well. just to kind of come for the government data. we also get those outside the u.s. where you made me a little bit more worried about government data. charles: it is sort of a big deal. the iso number, i think it was important. the employment month over month was down 4%. that was not good. if it continues, we can assume a number less than that.
11:06 am
what we have taken together over the last 24 hours does not necessarily bode well. we are not anywhere near where anyone wants us to be or expects us to be. dagen: plotting along means great news for the markets. what is driving this. >> i think that there is little dow in my mind. the longer it goes on, the more people will get worried about the risks because they kind of builds upon itself. you know it will get solved. it will give the market a higher probability of market jitters the longer it goes on.
11:07 am
i think it is consistent with what you may expect. connell: the report from treasury, that was just today. the comment last night, the report this morning. charles: you will hear people that never talk about the market. if we are down 200 points and they are pro- obama, they will say even the stock market does not like to close down. the closer we get to the moment of truth, obviously, you expect a lot of volatility.
11:08 am
the last two sessions is fine on this weakness. i think they are really smart investors. >> i find it very worrisome when the president starts talking. stick with the ronald reagan line of stocks go up and stocks go down. charles: is there anyone who does not think that at the end of the day we will get a continuation of sequestration, a continue of obamacare. dagen: thank you. connell: liz claman has the exclusive interview with jack lew later on this afternoon.
11:09 am
dagen: tesla pointing to a large metallic objects that hit one of the battery module or pacs. no one was injured. the stock certainly started selling off yesterday after an internet video showed the vehicle. take a look at how the stock is doing today. it was down this morning. up more than 500%.
11:10 am
connell: it shows how everything goes viral. the internet video and now everyone's talking about it. dagen: fires and fights. connell: facebook employees have been complaining about -- they have decided to build its own town. we will talk about that coming up. dagen: some of the employees are up in arms about dressing down. connell: a new website for college grads who need a job. coming up on markets now. first, a look at the oil market today. ♪ when we made our commitment to the gulf, bp had two big goals:
11:11 am
help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts
11:12 am
watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
11:13 am
connell: facebook is building this nearly 400 unit housing community for its employees. $120 million project.
11:14 am
it is fully equipped. it includes a sports bar, café, pool, wellness center, they even have a spot in it. the downside is it only holds 10% of the employees. here is a look at facebook today. 4982. you want to live and facebook town? dagen: it depends on how cheap the rent is. i have very expensive -- is wall street taking a page from silicone valley? the bank is introducing casual fridays. the 300-year-old bank has a reputation for being buttoned
11:15 am
up. the relaxed policy is not going over well with some of the old-school bankers. business attire is still required. shares of barclays are trading down slightly. dagen: nothing casual about eli lilly shares. the company taking a hit as it warned it would cut some jobs. nicole: very well done. the shares not doing too well today. down 3.5%. revenue and earnings have began to approve for eli lilly. when you talk about patent expirations, it is a big topic.
11:16 am
it is for depression. it worsens for them in 2014. what happening, eli lilly will have to cut cost in order to achieve their goals going forward. right now, the stock is to the downside. that is some good news. they will have to struggle in order to meet the goals. connell: thank you. dagen: should the president be talking about the markets? telling wall street to worry. he said that wall street needs to be worried. connell: 120-point oh client on the dow. helping college grads to find
11:17 am
work. say you go on an interview. they have some pretty cool ideas. first, a look at some of the currencies around the world and how everyone is faring against the dollar. ♪
11:18 am
11:19 am
11:20 am
11:21 am
>> 21 minutes past the hour. strategies off the water of italy. right now, 250 are still missing. a migration expert says three of the women have been rescued. that ship may have been carrying up to 500 africans. many of whom could not swim. a tropical storm has formed in the gulf of mexico. the national hurricane center has issued a hurricane warning along the gold coast from louisiana to florida.
11:22 am
a tropical storm watch has also been issued for parts of the louisiana coast. remember, they were hit by katrina. not even a government shutdown will stop football. they goodness. army at boston college. air force at navy. the games are paid for by non-appropriated funds. those are your news headlines on the fox business network. back to dagen. dagen: i love that. i adore this woman. i do not get to see her often enough. should the president be talking about the stock market? >> i think that this time is different. i think that they should be
11:23 am
concerned. dagen: i know he is fired up, as always. charles wrangle. congressman, it is great to see you. you are well slept and i am overslept. should the president be talking about the stock market? >> he should be talking about the country's economy. i want fox news to know that they should be telling the whole world that i challenge anyone to contradict that one person in the united states of america cannot only bring a level of security to a fiscal posture internationally to the debt ceiling, but also open up the united states government so that we can move forward.
11:24 am
some may ask who is that person. his name is john boehner. he is the speaker of the entire congress. most of the republicans believe we should open up the government and give the president the authority. among the republicans are a handful of people that refuse to go along. the answer to this is we are only representatives to our people. dagen: i want to get back to what the president said. the president, from a political standpoint, is it a lose lose?
11:25 am
>> i am not the least bit concerned as to whether there is a political liberty. i am telling you, we are not playing around about who will win the presidency in 2013. we are talking about whether or not our economy can survive a breakdown. this is big time. dagen: i want to address that. there was a bill that was actually sponsored by two republicans back in 2011. it has been presented even more recently. it is the full faith and credit
11:26 am
act. it would ensure that the government always repays it that . senator harry reid tabled it. he knocked it out. if the democrats are truly interested in making sure that we do not default, why would they not take this up? >> you are talking about renewing a legislative process. i am telling you, only one thing john boehner has to do and that is to give us a vote. give us a vote. if the majority of the people reject the resolution, then the
11:27 am
representatives of the americans have voted. there is no reason why he cannot say to the house this is too important to allow a handful of people to dig hate what we are doing. give us a vote. dagen: what are the odds that we get so close that we could default? >> i do not think it can happen. let me tell you why. we recognize that morally government has an obligation to those people that are poor, sick, disabled, the kids, the old people. we have not heard from the
11:28 am
private sector's. one person cannot hold a whole nation hostage. all it takes is one statement. we are handcuffed. there is one thing that we can do. vote. vote. vote. the american people, everybody in every district wants a member of congress to respond. the republican said that unless the tea party members agree, we cannot vote. >> they are a representative of
11:29 am
their constituents. they are voting and acting the way that i would assume those buried voters wanted them to. >> i do not blame them at all. that is exactly what they should be doing. what he should say is everybody go to the floor and constitutionally represent the district. dagen: congressman, we have to go. i need to be better slept the next time you are on. look at how much energy you have. you are fired up. >> fired up and i am ready to go.
11:30 am
connell: he does have a lot of energy. lou dobbs has a lot of energy also. keep it going. dagen: more than four years after michael jackson's death, aeg will not pay one dime to his family. cleared of that wrongful death suit out in los angeles. ♪ [ bagpipes and drums playing over ]
11:31 am
[ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align.
11:32 am
11:33 am
dagen: here is what is coming
11:34 am
up. lou dobbs is here with his thoughts. helping college kids find work. a website that lets graduate talk among themselves. aeg cleared and the wrongful death suit brought by michael jackson's family. , brought up a very good question. why would the family sue? connell: bp may be off the hook. nicole petallides has that story for us. nicole: let me break it down for you. this all dates back to the 2010 oil spill.
11:35 am
it turns out that they will craft some payments. it slows the pace of these hundreds of millions of dollars. it is good news, ultimately, for bp. i cannot imagine that they are really that happy. back to you. connell: congressman charlie rangel on a few minutes ago. here he is. >> i am telling you, there is only one thing john boehner has to do. that is to give us a vote. if the majority of the people reject the resolution, the representatives have spoken. dagen: lou dobbs is here.
11:36 am
host of lou dobbs tonight. i am just going to point at you and say, go. lou: i love charlie. he is 80 years old. the man is bringing it every day. he is terrific. his idea of cells john boehner and the republicans short. people need to focus on this. connell: the market comments. lou: this is being advised by morons. he cannot win. he looks like a fool for having made such a statement.
11:37 am
what kind of mindless advisor would urge him in that direction? he has reached a point of desperation. now the republicans coming forward and give hard-working americans the same break. it is simple basic fairness. the republicans have seen the high grounds of fairness. it may be unfamiliar territory, but they have seized it. i think it will be, ultimately, the reason they prevail. to eliminate is a matter of fairness.
11:38 am
the subsidies for congress and white house staffs, it is absolutely appropriate. republicans will prevail. it is utter, peter nonsense. it is all about numbers. this government still brings in more money. until that inverts, there is no possibility of default other than a consciously irresponsible deplorable act by the administration to make that decision.
11:39 am
connell: because of the president or other things? lou: it is difficult to tell. i guess we could rely on the old serviceable's. i think more likely that this is a market that is trading relatively thin. i am sure he will give us the reason why they are not even going to discuss the default again. what may be unexpected to many of you, they will prevail in
11:40 am
this. dagen: lou, on it, always. 7:00 p.m. every night. lou dobbs tonight. also on again at 10:00 p.m. eastern. connell: there you go. we have this new website we will talk about coming up in a few minutes. it shows you people coming up with ideas. this is good. the guy used to be at google. dagen: parts of the private sector are feeling the government shut down. connell: aeg live cleared in this wrongful death suit. we will have that coming up as well. don't go away. "markets now."
11:41 am
♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. you really love, what would you do?"
11:42 am
♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ ♪ >> i am jo ling kent with your fox business brief. due to the government shutdown, there will be no monthly jobs report released on friday. no alternate release date has been scheduled. weekly jobless claims increased by 1000 last week.
11:43 am
that came in better then the 313,000 that the economists were expecting. mortgage rates dropped for the third straight week according to freddie mac the average loan fell to 4.22%. that is the lowest average since early july. that is the latest from the fox business network. giving you the power to prosper. ♪ so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. and this park is the inside of your body. see, the special psyllium fir in metamucil
11:44 am
actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits in 1 super fiber. connell: to get away from all of the shut down talk and just for a few minutes let's talk about what i think is a great topic. helping college grads find jobs. we have the chief executive officer and cofounder of college feed.
11:45 am
i want you to explain what you are doing here. it almost seemed to me, it seemed to be kind of like linkedin. >> thank you for having me on this show. linkedin is one way to describe it. the idea is that college kids have very specific needs. they are not like professionals that have specific work experience. we ask very little of the college student to start with. we say tell us a little bit about the companies you want to work for.
11:46 am
point us to some examples of projects. kids can show off projects. connell: let's say that a college graduate goes out for an interview. what do they share? >> want to share that information, it is highly personalized for you. given the interest in white you are good at, expiration of your career. what you may want to do is step
11:47 am
one. step two is these are the countries at -- companies that you are interested in. basically after you do a job interview, you can come back and look at other options. you can go explore options for yourself on an ongoing basis. connell: i think it is interesting. just give us one quick observation and that we have to go because of time, unfortunately. any big trends you are noticing? what we are noticing is there is a huge focus to get humanities
11:48 am
students. if students can show their potential, it could be english, it could be writing, it could be history, psychology, these kids are bright. they have potential. it can be demonstrated to employers if they do a good job on their profile. the trend we are seeing is that a lot of these kids are employable if they put in the effort. connell: check it out. college feed is the name of the company. thank you. dagen: is the government shut down, they are seeing red. mark newton is here. what do you think is driving the broad selloff today on top of that? >> the defense sector as a whole is starting to see real signs of
11:49 am
this being detrimental to them. nearly 5000 workers can be furloughed by this. definitely starting to see a lot of companies having the potential to be hard hit by government shut down. dagen: good to see you. connell: aeg surviving the wrongful death suit. dagen: for coming up from dennis kneale. ♪
11:50 am
11:51 am
11:52 am
11:53 am
♪ connell: we have the musics for him. dagen: michael jackson died more than four years ago. the court battle continued up until now. connell: dennis kneale is here to talk about it. the $1.5 billion wrongful death lawsuit filed by michael jackson mother and three children. one of the key points was in hiring this doctor full-time to stay with michael jackson and keep him drugged up.
11:54 am
why a concert promoter would need to hire a full-time dr. the jury deciding no-fault. he is worth so much and he left behind so much. he is worth more dead than he was alive. dennis: the estate was in debt and it has a net worth of $6 million up. the mother does not get some of the same benefits as the kids do. dagen: 20% to charity, 40% to the kids and 40% to the mother
11:55 am
until she dies and then that goes to the kids. there was this ugly fight. connell: you are not entitled to win. a california jury ruled in favor of a business. that is news. dagen: more interested in this then the government shut down. let's get back to the real crisis in this country. connell: we have to wrap up dennis so we can get dennis on. dennis kneale is coming up.
11:56 am
do not go away. the government shut down. everything else. dagen: it is free right here on fox business. connell: i am willing to pay for it. dagen: will washington, d.c. be the grinch that stole christmas from the retailers? a high-end lingerie company launched a video to go with that segment. ♪ [ male announcer ] need help keeping your digestive balance in sync?
11:57 am
11:58 am
11:59 am
try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align. >> i am dennis kneale. cheryl: i am cheryl casone. we are in sell-off mode selling of these markets are as the bickering in washington is continuing at this hour. the president's fear campaign hitting investors. political name-calling, standoff, backdrop as the
12:00 pm
shutdown could take a back seat to a default. dennis: what else is bugging me? politicians stoking panic in the government shutdown. my take ahead and we want to hear from you. cheryl: a somewhat rosy forecast for holiday shopping but there are concerns washington gridlock will be the grinch that steals christmas. vice president of luxury laundry co. coming up with his thoughts. dennis: looking forward to the video. u.s. a number one in oil and natural gas over taking russia. phil flynn is going to be talking about that at the cme. top of the our stocks every 15 minutes, nicole petallides on the floor of the stock exchange. nicole: looking at a market that accelerated selling. we are one or two points off of session lows, dow jones industrials down 183 points. the fear index builds momentum to the upside. a slew of red arrows here on the big board.
12:01 pm
the nasdaq is down 1%, the s&p down 1-1/3% of the dow 30 which is comprised of everything from financial to industrial energy paula all 30 names have down arrows. the -- not so today. you are seeing yen selling across the board and right now it is the type of action we have seen a little more momentum than we have seen lately however traders take a government shutdown in stride and anticipate something will be done to keep a keen eye on october 17th, the date of the debt ceiling has yet to be decided and also the fact that this whole thing is happening and could snowball into serious slowdown of economic activity and what does that mean? wait for gdp. cheryl: president obama blaming the government shutdown on the
12:02 pm
republicans, quote, obsession with the dismantling obamacare. republicans putting the blame on the president. with the shutdown in its third day no clear short-term fix in sight. rich edson is on capitol hill following every vote, every meeting, every twist, and return. where are we at this hour? rich: congress back in session, the house will pass some piecemeal proposals that's fund certain parts of the government. democrats are saying fund the entire government, not just parts of it. this after the meeting and the white house, senate minority leader mitch mcconnell says it was a meeting at the white house for negotiation to decide whether or not they were going to have negotiation. basically a waste of time. when you look at what they are saying after the meeting after two days of a shutdown they are saying the same thing. >> if you hope to get out of this mess and end the republican government shutdown, get rid of the tea party direction.
12:03 pm
work with us. help us reopen the government we can start negotiations today. >> all the house is asking for, they want a lot more but all they're asking for at this point is a level playing field when it comes to obamacare. that is the only thing standing in the way of the government opening back up. and it is a pretty reasonable request. >> there continues to be no indication on capitol hill or the white house of any change in the democrats's position or the republican position and appears as we move closer to the october 17th debt ceiling deadline these two negotiations may become one. the issue on that is republicans are trying to figure out what they can pass out of the house to attach to the debt ceiling as their opening offer. democrats say they refuse to negotiate. cheryl: rich edson live from capitol hill. thank you. dennis: for more on the shutdown
12:04 pm
let's bring in democratic congressman from ohio and fox news contributor dennis kucinich. thanks for being with us. so far looks like the republicans are the irresponsible bad guys. how soon before america might start to think it's pox on both your houses, democrats and republicans and should democrats be worried about that at all? >> all-american as should be wary about a lack of confidence in the institution of government. ultimately this could weaken congress as an institution. markets have every reason to be concerned because markets rely on stability and predictability and we are seeing a lot of instability out of washington and inability to reach an agreement. dennis: for decades presidents and congresses that use things like funds and the funding is for that initiative to force changes in policies that already have been adopted. is this obamacare pushed vacated by the republicans, is it more than we have done in recent
12:05 pm
decades? >> the lot is in place, was affected waited quite some time ago, a big step happened this week, people signing up in the exchanges. i don't think there is going to be any way to dramatically change that no matter what someone's position is. what we are seeing is a stalemate, a classic stalemate brought about by an ideologically opposed actions and there is a point at which the american people have a right to expect partisans will put aside their differences for the greater good of the country. isn't interesting that we have goldman sachs which is too big to fail and the united states of america is not? we need to keep our eye on the bigger picture which is the reputation of the united states, its role for the people of the country, its role in the world. we could be approaching a defining moment october 17th.
12:06 pm
it could trigger a constitutional crisis. dennis: i hope we fix it rather fast. you talked about at some point a crisis you have to put aside partisan politics. i read a commentary in the wall street journal yesterday complaining president obama instead of being the president for all the people in this crisis has been as partisan as possible in favor of only the democrats. how do you respond to that? >> every player in this, the president and congressional leaders and members of congress have to be very careful not to increase the polarization which makes it even more difficult to come to resolution. dennis: a lot of polarizing comments going on here. do you think the president should cave and be willing to talk about changing? take off the tax on revenue for medical equipmentmakers, the president agreeing to the rail and forcing business for a year, we could make some changes, does he lose if he starts to negotiate?
12:07 pm
>> i remember what president kennedy said in an inaugural address, we should not negotiate out of fear but never fear to negotiate. there always has to be some give-and-take in government. that is the nature of it. i will say this. we have some structural problems that are not being addressed that are very big, bigger than the question of the budget and the debt and the structural problems relate to the way the monetary system is set up. in order to create money you have to go into debt and as you do that you are going to keep digging a hole and we have bigger questions that have to be faced with respect to the way the system is set up and of course this conflict we are seeing in washington right now doesn't always reflect on bigger questions but maybe it is time we started to do that. dennis: isn't the catastrophic implications that they blow this the reason why the system is self healing and of course they will work this out?
12:08 pm
>> not necessarily. i would not have bet that we would have failed to be able to meet the budget issues and create a partial government shutdown. the whole system should be set up to resolve those differences but now it is set up the way it is working is creating more differences and more inertia. this is a teachable moment for the american people about institution of government. what people have a right to expect are subtle differences using the system that is set up. when we go outside the system and involve outside groups and ideological approaches to the world we are losing sight of a pragmatic things that markets and the american people have a right to expect. get the deal done. dennis: let me tell you one last thing. i am not afraid. shutdown day 3, bring it. dennis kucinich. cheryl: looking at the markets, stocks are near their low for the day after the treasury department's storm warning that
12:09 pm
a credit default would be not only catastrophic but more damaging to stock markets and economy than the 2008 financial crisis. let's bring in two people who know about this, the senior macro economist at pnc financial services, dan shaffer of shaver asset management. you also say the government needs stability this was going to take the markets. they have. you are not surprised at all. >> i am not. it is just the beginning. what the government is doing is similar to ancient greece when the system came in that everyone was competing with each other where the olympic teams from and they are competing against each other in washington and ruining this country financially which is already on the brink of financial ruin. cheryl: a couple points from this report that was linked from treasury talking about what could happen, the debt ceiling deadline being met, the country going into default or the shutdown. permanent scars to the economy, household wealth will decline,
12:10 pm
could be worse than 2008. the united states treasury saying this.we will have jack l in the day with liz claman but the dollar is weak. they are not on this report. >> we have been for a government shutdowns before and we know how it will be resolved. we haven't been to the u.s. government not meeting its obligation on the debt. we don't know what is going to happen but the potential is for disaster and the treasury department is right to be concerned. i don't know if it will be worse than the 2008 financial crisis but has the potential to be. cheryl: and also the dollar could weaken. the value of the dollar. that will have -- the only thing i can see is commodities if this goes down. >> these commodity models are based on a rate of return which is usually u.s. treasury. and every model. and if you don't have it would debase your models on so now was
12:11 pm
one of volatility starts to pick up like we had in the 70s, we were in the inflationary environment and now we go to a deflationary depression and everything will be all over because confusion is going to take over. cheryl: you can't make the argument that the u.s. economy was rebounding. maybe you can but it doesn't seem like you look at unemployment, consumer confidence. >> the economy is expanding and growing butted disappointing pace of growth. five years in to the recovery we are down by two million jobs, the unemployment rate is down about 7%, we have a small business survey, businesses are still not back to where they were in terms of optimism about the economy so we have many economy that is healing but this would be a huge setback. cheryl: we are not going to get the jobs report for tomorrow. how are we feeling about that? you are rolling your eyes. >> that is what i do. i look at data every day and when it is not there i don't know what to do with myself.
12:12 pm
tells us where the economy is going. we got unemployment insurance claims today but if we don't get the weekly jobs report that is what the federal reserve is looking at some makes their decision more difficult so this is a real problem for economists and policymakers. cheryl: i am sure ben bernanke and the gang at the fed is thinking the same thing. ben bernanke has been critical of congress, cannot be happy. >> he knew something was coming when he said no tapering which he couldn't take her anyway but the fact there is no data, data driven markets, not that there is no date but will be all over the place and we are seeing that today and this is the early stages of what could really happen. cheryl: what will we do at 8:30 tomorrow morning? what will we do with ourselves? >> watch the market go lower. cheryl: okay. their forecasts. >> i will be doing some stress testing for the bank, that is something we're working on the bible be busy with so is a productive use of my time. gerri: more fun to go to the dentist in a moment and watch
12:13 pm
the markets open tomorrow. thank you very much. great to see you as always. dennis: what is bugging me? the panic mongers. politicians of both parties trying to stoke panic among the people in this government shutdown. the dire warnings people will go hungry, recession could descend, unwanted babies will be conceived, our shores won't be defended. really we are going to be just fine. our president has raised the art of peddling panic to height. he speaks of paychecks delayed in small businesses getting hurt, vital services at risk seniors and veterans and women and children. why is it always the women and children? are we on the titanic? democrats and republicans say the full faith and credit of the united states may be at risk with catastrophic consequences. they are not sitting down to a verdict so it must not be that much of a threat at all. it all has a hollow ring by now.
12:14 pm
the sequester came, we were told to brace for crisis and the union held intact. wake up, washington. we don't need government to live our daily lives, to eat and work and play. we are better off without it so stay shutdown as long as you want, see if we even care. what do you guys think? are politicians stoking panic in the government shut down? take it. cheryl: a lot happening. at this point planes are still flying, airports are open, but there are warning the government shutdown may threaten air travel. we have details when we go on the road coming. dennis: we are number one in oil and gas production beating russia. phil flynn is cheering on from the cme next. as we do every day at this time let's look at energy. when we made our commitment to the gulf, bp had two big goals:
12:15 pm
12:16 pm
help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions.
12:17 pm
i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare.
12:18 pm
cheryl: black hawk helicopters, military personnel, the defense sector is the biggest we. the dow 30, down 169 points off of ssssion lows but look at boeing falling and accounting for a big piece of the impact down 18 points for the dow. that is boeing. united technologies is a stock to watch, two dow component, watching the defense in the aerospace sector because the shutdown is hurting those, backing off a little bit. a little problematic today, down 170 points, unchanged, not one green stalk in all dow 30 stocks, one of those days. let's bring in nicole petallides on the floor of the stock exchange looking at another stock. and the fire was fascinating. nicole: one fire can hit a soft heart and we have seen that evidence here with tesla. we brought you the story right away as soon as we heard about
12:19 pm
it yesterday going in to the closing bell. the stock tanked and dropped 9%. some of the losses finished around $0.06 on the downside but accelerated selling again today. afire in washington state and we are seeing tesla shares on sale again today down 5% today. one day of selling after another, concerns about how this happened, why this happened. tesla made it clear about the number of miles that have been driven into as one vehicles without incident and this particular incident happened on the model s where it encountered metal issue and let me get it right, metal object in the middle of the road. the buyer told the driver to drive over to the side and get out and gave them the right signal and the fire was only in one portion but it is not good news. cheryl: some would say buying opportunity on that one.
12:20 pm
thank you. >> usa overtaking russia as the world's biggest producer of oil and natural gas. the trading pits of the cme, phil flynn is cheering about it. jeff: washington may be in a shambles but there's one industry in spite of those guys, who is number one in energy production? u.s. a! u.s. a! let's hear it! come on! there we go. they are not sharing for harry reid. the u.s. energy industry is defying all the government shut down. they are beating everybody in the world right now. they are changing the global face of the global energy market, geopolitics, you name it and it is only begun. this is the beginning of a new revolution that is going to overtake what is happening in washington and another thing. this is the real spirit of america. when everyone felt it couldn't be done the usa did it and did it again. let's hear it, guys!
12:21 pm
these guys are great. dennis: they sure are and so are you, thanks very much. cheryl: united technology forced to furlough workers due to the government shutdown. liz macdonald ahead on who else is getting the boost while washington sits around and does nothing. dennis: what is going on here? workers making $400,000 a year striking at new york's carnegie hall forcing opening night to be canceled. that story ahead on media minute. ♪
12:22 pm
12:23 pm
[ engine revs, tires sque ] [ male announcer ] since we began, mercedes-benz has pioneered many breakthroughs. ♪ breakthroughs in design... breakthroughs in safety... in engineering... and technology. and now our latest creation breaks one more barrier. introducing the cla. starting at $29,900. ♪ ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
12:24 pm
[ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim from td ameritrade.
12:25 pm
>> 25 past the hour your fox news minute. in the past hour the death toll from the shipwreck of a migrant ship off the coast of italy has increased to 100. migration expert says only 3 of all women on board have been rescued. that shipped may have been carrying 500 africans many of whom could not swim. in tennessee the highway patrol says it could take a few days to
12:26 pm
release the names of eight people died in a fiery bus crash. we have been covering this, a church bus blew a tire and interstate 40 yesterday causing it to veer across the highway median into an suv and the tractor trailer. 14 other people were injured in an accident. and they will play football this weekend despite the partial government shutdown, army will go to boston college, the airport will visit navy. senior defense official says teams will play because the games are paid for by non appropriated funds. those are your news headlines. now back to the fabulous cheryl casone. cheryl: is fabulous that they would not allow for ball replayed this weekend. >> i'm a huge fan of football so i am not with you. cheryl: good for you. for those who believe the government shutdown isolated to capitol hill to get ready for a wake-up call as the shutdown
12:27 pm
spreads, defense contractors, even more furloughs with concerns about local recessions. something we haven't looked at yet. >> not just united technologies, 2,000 workers could be furloughed for this monday, 5,000 by november but the aerospace industry is warning, saying we are concerned it could be nationwide furloughs at defense contractors, the states and cities that could be affected. let's show the map for the viewers where these furloughs could happen. concerns about local recessions in these areas on top of the sequestered job cuts now we have a government shutdown putts coming. cheryl: looking at this with the dow, united technologies, boeing, lockheed, general dynamics, everything from helicopters to ship hardware, all of that in jeopardy. the military overall as we have
12:28 pm
seen, military spending, the military still operating despite the government shut down. cheryl: so important what you just said. united technologies makes black hawk helicopter and the engines alking about is e. general dynamics, weighing on the dow today, united technologies, responsible for a fifth in the drop in the dow today so what the issue is here is government auditors and inspectors to review and take a look at the machinery and military hardware and product gets sold. that is key here. we have seven million people across the country who are full time equivalent contractors. cheryl: the point is the whether defense contractors are, quote, essential, secretary of defense to get the call. >> we continue to follow.
12:29 pm
great stuff. thank you. dennis: they see panic bonding. and your response is coming up. cheryl: warnings that washington could be the grinch that steals christmas. i will go 1-on-1 with the vice president of luxury lingerie brand coming up. as we go to break take a look at -- can't find any winners or losers on the s&p 500. [ male announcer ] imagine this cute blob is metamucil.
12:30 pm
12:31 pm
and this pk is the inside of your body. see, the special psyllium fiber in metamucil actually gels. and that gelling hes to lower some cholesterol. metacil. 3 amazing benefits in 1 super fiber.
12:32 pm
christmas shopping could rise 4% this year better than last year
12:33 pm
unless the government shutdown undercuts it. we go 1-on-1 with an exact from the high end lingerie maker and new fears that airline travel will be slowed down by the shutdown. we will narrow that on on the road segment. college facebook city. the company planning to build housing for the employees near its campus though they have to work all the time. you won't believe the amenities. nicole petallides with the big movers. nicole: actually got that for my wedding day, beautiful long gowns and robes. beautiful quality. let's talk about what is on the move. i am watching eli lilly, they expect a report of a couple of drugs at the end of this year or next year so expect that to do that and cancer drugs and others and also watching business and
12:34 pm
other income boat realm and the brokers actually upgrading, that was big news. and u.s. retail sales should rise 4% up year over year. we will see what happens with the tough economy and also watching andy's list, where they are making the prices all little better and what piper jaffray likes is the membership cuts they're doing, reiterates their overweight rating and put a $30 price target and one last one taking a look at yelp which has been on the move and that is to the downside and netflix sino is to the downside but that it and new all-time high today before it pulled back. cheryl: somewhat rosy forecast for holiday shopping this morning, national retail
12:35 pm
federation forecasting retail sales will rise 3.9% this holiday season outpacing last year's gains but the washington show down and shut down may be a threat to consumer spending. let's bring in vice president of luxury monterey company, kerri in department stores throughout the country, nice to see you. for 36 years you have been in business in all the major department stores, you know the retail federation well. how worried are you about this forecast that it will not be on the market? >> it does seem aggressive. throughout 2013 things have been soft. spring started slow. someone argue that is weather-related. that pushed spring buying into late spring and the batter lee fall, back to school not inspiring and will be heard in terms in september have been weak so in department stores and apparel it would be a push to say anybody is excited about the next couple months. cheryl: offer a lingerie, luxury
12:36 pm
in general considered a luxury in that if consumers get concerned they would perform on a sector like yours. we didn't see that in the recession. and a shutdown of the government's, affect your customers. >> it is not helping. you could argue that apparel outperformed in 2012. that is not the case in 2013 to the degree people are spending money, strong electronics sales and the apparel has been not as great. the situation in washington not helping. a lot of people going on unpaid leave not helping either but that is one thing but even before that the outlook was not necessarily as exciting as it was. cheryl: and the launch of obamacare, something they have been shaking in their boots about, we have seen a couple years now. that is a factor. >> some retailers moved to go to
12:37 pm
part-time, and obamacare or no obamacare the health-care system has been in trouble and we were a privately held company with increase of 15% for 5 or six years, is obamacare helping? probably not. the situation was broken before so hard to blame that. cheryl: everyone is going public. michael scores advance the couple in years and everyone in fashion wants to go public. would you consider it? >> i think we may be early in the cycle. the ip 0 was such a success they have done an amazing job of brilliant management and can argue fashion people are wonderful in terms of understanding finance and housing but everyone seeing how successful it is. and everybody says he is
12:38 pm
planning to go public. we have all seen the success of michael course, we are privately held company and we are happy with our company. cheryl: you got the last name to prove it, thanks, good to have you on the show. over to you. dennis: these guys make how much? stagehands' earning almost $400,000 a year and yet they're going on strike at new york's carnegie hall forcing opening night to be canceled for the first time in 1 22 years coming up in media minute. cheryl: you can call this facebook city after a company is planning to build housing for its employees next to its campus. that is coming up in the west coast minute. so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things.
12:39 pm
really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. a new way to bank. i'd like that. a better way to save. ally bank. your money needs an ally. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
12:40 pm
tracy: i am tracy byrnes, the labor department's is due to the government shutdown there will be no monthly jobs report, earlier jobless claims since the data is largely collected by fees and initial jobless claims increased by 1,000 to 308,000. growth in the u.s. service sector cools by the non
12:41 pm
manufacturing survey index dropped to 54.4 in september down from 58.6 in august. report found the pace of new orders and higher rain slowed and fiat and chrysler ceo sergio marchionne hopes the process will give clear evaluation of chrysler shares to pave the way for a merger. it wants to buy the 31.5% that is owned by the health-care trust. that is the latest from the fox business network giving you the power to prosper.
12:42 pm
dennis: the government shutdown entering the third day many americans wonder how it will affect their travel plans and joining me with more is the senior editor of travel. reading for your notes looks like almost no effect at all. >> that is the good news. if you're flying today, flying tomorrow is business as usual, a
12:43 pm
lot of international influx into the united states so it is on international front where most of the concern is. dennis: this shutdown comes at the shoulder season in the travel industry to get people -- is that a good thing or bad thing? what is with this phrase shoulder season? >> the news is good and bad depending who you are and where you are. shoulder season naturally be find the period, a slowdown in travel, we see better deals during this peer go until we head to the holidays. what we are seeing in the northeast, opportunities happening right now, look at maine or arcadia in the last day or two, states like new york pumping out some pretty aggressive marketing reminders that these national parks and landmarks are shutdown, plenty
12:44 pm
more to see or do. arlington, alexandria, va. 30% bump in foot traffic, a lot of d.c. tourists looking at alexandria to visit instead. interesting number, 30% bump in foot traffic and a lot of the smithsonian museums are shutdown. uptick in foot traffic. people looking at alternatives. though generally the national -- the biggest hit looking at a thirty million peer day loss as long as this continues. there are other entities seeing a bit of a bump. dennis: i remember in the sequestered at a a suspended air-traffic control people, congress came under criticism and passed a measure, how come the air traffic control guys didn't get furloughed in this shutdown as they did in the
12:45 pm
sequestered? >> the faa did some prioritizing. they did furlough a third of their work force, a 13,000 are furloughed, they get the critical employees in place which is the air-traffic controllers, the equipment, maintenance folks, accident investigators but 13,000 people including 3,000 aviation safety inspectors are not working, trainers are not on the clock. they shifted some non critical personnel of the way, and that the essentials personnel in place. if we drag this out over several weeks, schedulingwhy is, something has to give. dennis: won't last several weeks. this will be over but very capably and knowledgeably handles, thanks for being with us today. looking for the best. cheryl: time for stocks and one day for stocks down 160 points let's go to the floor of the
12:46 pm
stock exchange and david williams of strategic gold joining us. i got to tell you there are headlines from the fed president and we heard from the treasury saying the dollar is going to continue to be under pressure. what is going on with the contract? we are 13-16. >> very strange occurrence, starting to shut down and you see a rally in gold and it faded. there was a nice large rally that got this 1335, today is changing again so it is acting, the reverse of what you would expect each day so in the long term it is fine because the cost of production of gold is $1,300 an ounce. we are at the bottom of that range but when it comes to things like the fed and the dollar you would think it would act little stronger and it is not at this point. cheryl: is an interesting day and it is surprising. thank you so much.
12:47 pm
appreciate it. dennis: in the media minute the nation's number 2 concert promoter has been cleared by ed jury in the $1.5 billion wrongful death lawsuit filed by the mother and children of singer michael jackson. jackson died of a drug overdose in june of 2009. katherine jackson and grandchildren sued a e.g. live alleging it negligently hired a doctor who administered a fatal dose. they don't call it catching fire for nothing. the sequel to the hunger games doesn't come out until november but already tickets are selling out and catching fire got 70% of all tickets sales when they went on sale oct. first, the first under games had $700 worldwide. this one could fare even better. this just in from the department of nice work if you can get it. unionized stagehands are on strike forcing the cancellation of the opening gala for the
12:48 pm
first time in 1 22 years and the average pay approaches $400,000 a year. it is unbelievable or worse, all too believe bubble. so are politicians stoking panic in the government shutdown? that is bugging me and it is your chance to weigh in on what is bugging you. tweet us your thoughts. cheryl: you worked at facebook but it is also your landlord. that will come up in the west coast minute. an interesting plan going on. the dow is up substantially down 139 points. we were down 185 so take it. there is the nasdaq, tesla beating the nasdaq lower. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit...
12:49 pm
to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
12:50 pm
12:51 pm
12:52 pm
has a massive complex, now the social media giant wants to add housing to all of this. facebook is working with a local developer to build a 394 unit housing community for its employees that will offer everything from a sports bar, doggie daycare, only a small handful, possibly 15 units will be open to non facebook employees. take a look at the stock. is down $0.81. not $50 right now. dennis: two interesting points. in seattle, when the after-tax credit they're trying to offset the high cost of state environmental regulations. imagine if he didn't have stayed rules and your facebook adam, google perfected the idea of providing dental care on campus of employees work longer and longer hours. cheryl: jim keeps me at work. does and to keep u.s. work? dennis: no, i as you can tell.
12:53 pm
what is bugging me? politicians stoking the and the government shutdown. this is what you had to say. matt miller said the message to wall street, panic. do you feel played yet? best new word for the day, prostitutes. do you think? government non-essential services is redundant. jeff matthews says, quote, when it figures out life and gone without that is when the political class will create a crisis. good stuff. cheryl: tune in this afternoon, liz claman has an exclusive interview with treasury secretary jack lew at 4:00 eastern time today, running on "after the bell" but obviously what that treasury board coming, lot of questions what treasury is saying. dennis: using the word catastrophic several times stoking more panic. cheryl: the dollar will be week. was a heck of a report. you don't want to miss this
12:54 pm
interview. again we are down, we're down 138 right now and still down triple digits, debate over the government shutdown turns toward the debt ceiling and potential rate that they don't have. dennis: next hour and look at the keys for the president to just ignore the debt ceiling. you heard that right. adam and lori will get the contrarian view and the very latest as the debate rages on on capitol hill. [ shapiro ] at legalzoom, you can take care of virtually
12:55 pm
all your imptant legal matters in just minutes.
12:56 pm
protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. and launch your dreams. if you've got ityou know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd mntenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better.
12:57 pm
does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. what'swithout the thinking capitathat makes it real?? what's a vision without the expertise to execute it... and the financing toake it grow? whatever your goal, it can change more than your business. it can change the future. that's why, at barclays, our ambition is to always realize yours. lori: i'm lori rothman. adam: and i'm adam shapiro. the grand bargain is back. house republicans are moving closer to linking the debt limit and government shutdown into one big fiscal fight. oh, no, what could go wrong with that?
12:58 pm
lori: the latest threats still rattling wall street today, although off session lows at the moment as the treasury department warns default could lead to recession worse than we saw back in 2008. adam: if congress forces his hand, should the president just ignore the debt ceiling? the contrarian view from brookings fellow henry aaron. lori: and does the government shutdown have one of the largest is sectors of the economy slamming on the brakes? the american trucking association's ceo and former governor of kansas bill graves joins us with the good news and the bad news about the trucking industry. adam: right now we're going to head to the floor of the new york stock exchange. our oney coal petallides is there. the dow is down well over 100 points but not as low as it's been so far, right? >> reporter: that's right, adam and lori. we were at session lows earlier today, we've come off those lows to settle below that 15,000 mark. just the idea of the government shutdown looming and how long will it take and the debt ceiling approaching,
12:59 pm
1:00 pm
left
right